Bankia will lose its Ibex-35 listing on Monday

Troubled Bankia will be taken off the Ibex-35 listings on January 2 because of “special circumstances” regarding the bailout it will receive from the state’s Orderly Bank Restructuring Fund (FROB), the bourse technical committee said in a statement late Thursday.

Bankia and its parent company, Banco Financiero y de Ahorros (BFA), stand to get 10.7 billion euros to help in the recapitalization of the troubled lender.

Bankia’s last official day of trading on the Spanish blue-chip market will be Monday before the stock market closes for New Year’s Day. The bank, which was formed from the merger of seven savings banks, including Caja Madrid, made its Ibex 35 debut in July 2011.

Its shares were initially floated at 3.75 euros a share but by Friday afternoon stock had plummeted to 0.40 euros per share.

Recapitalization of Bankia and BFA will be done through the emission of what is known as binding convertible shares, or CoCos in Spanish.

The High Court has opened a full investigation into Bankia’s board members, including its former chairman Rodrigo Rato, to determine whether they tried to conceal the lender’s ailing financial health from regulators. A citizens’ group has also filed a criminal complaint against the Bankia board for allegedly duping clients into purchasing preferential shares when the bank was first listed.